At July 31,Sonata Company had a general ledger cash balance of $5,900.Deposits in transit amounted to $1,200 and there was a service charge of $20.Outstanding checks totaled $1,500.What is the balance shown on the bank statement at the end of July?
A)$5,580
B)$5,880
C)$6,180
D)unable to determine from the information given

Question

Quizplus · Accepted Answer

Starting with the general ledger cash balance of $5,900, we add the deposits in transit of $1,200, which gives us a subtotal of $7,100. Then, we subtract the outstanding checks of $1,500, which gives us a adjusted or adjusted balance of $5,600. Finally, we subtract the service charge of $20, which gives us a final balance of $6,180. Therefore, the correct answer is (C) $6,180.

At July 31,Sonata Company Had a General Ledger Cash Balance